So how can an insurance professional, risk manager, general
adjuster, and asset manager make an informed decision regarding
investigating a flood claim? Assuming that there is insurance
coverage and that a claim will be paid, which of the thousands of
flood claims carriers receive each year should be investigated for
subrogation? There are several approaches, from investigating all
flood claims to investigating only those with obvious potential
such as dam breaks, pipe breaks or collapses. The best solution is
somewhere is the middle; a disciplined staged approach.
As recent experience shows, flood subro claims can be litigated
and won or settled. In order to make money on these cases
informed decisions must be made early. Most people think of
floods as Acts of God so liability carriers are understandably
reluctant to discuss settlement. Only when we can demonstrate
that human intervention caused or contributed to
the loss will meaningful settlement discussions
